MSP 4.0: FROM CONTINGENT WORKFORCE MANAGEMENT TO CONTINGENT TALENT EMPOWERMENT
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will be especially applicable for those organizations seeking to rejuvenate their contingent workforce
programs as well as those that have more recently realized the importance of effectively managing
the contingent workforce. The continued, and potentially accelerating, talent demand - supply gap in
many roles such as technology and healthcare will also drive greater adoption of the MSP model.
The robust MSP market growth will be driven by both first - time MSP buyers from newer industries
and mature buyers asking for more strategic services from their providers.
l New sectors: Newer industries are opening up to the MSP model due to a variety of reasons.
This includes the government / public sector agencies who realized success with outsourcing during
COVID - 19 for roles such as contact tracing and fast - growing sectors such as digital companies
and online retail
l More disruptive and strategic services: Many buyers are likely to ask their MSPs for help with
disruptive and strategic services such as direct sourcing, end - to - end services procurement
(S2C / strategic sourcing / category management) and end - to - end IC/freelancer management
including freelancer sourcing
The nature of engagement between enterprises and MSPs will undergo a
fundamental shift
Aligned to broader outsourcing norms: As direct sourcing emerges as the model of choice (versus
sourcing through staffing suppliers), MSP will slowly evolve from a supplier management - oriented
model to a more strategic outsourcing - oriented model that is more aligned to the outsourcing norms
of the BPO and RPO markets. The MSPs' responsibilities will include the management of and
accountability for the entire contingent workforce hire - to - retire cycle.
Consequently, pricing models may also align more closely with broader outsourcing models, shifting
from the unique supplier - funded model to a buyer - funded model through a combination of variable
fees (in the form of a percentage of managed spend) and fixed fees (in the form of a monthly
management fee).
167 - 172
260 - 270
2021E 2025E
EXHIBIT 11
Projected global MSP market growth
Source: Everest Group (2021)
10 - 12%
Annual spend under management in US$ billion
